- Thailand’s crypto sandbox allows global tourists to swap digital coins for Thai baht.
- The system uses licensed firms and secure wallets to help manage travel spending.
- This move aims to bring more visitors and grow the economy with modern tech use.
Thailand’s Securities and Exchange Commission (SEC) and the Bank of Thailand have launched a national regulatory sandbox enabling foreign tourists to convert digital assets into baht. Under this initiative, licensed digital asset providers will facilitate the exchange of crypto to fiat, with tourists spending the converted funds via regulated e-wallets. The sandbox builds on a prior pilot program in Phuket and is now backed by Thailand’s top financial authorities, including the Anti-Money Laundering Office.
Phuket Pilot to Nationwide Rollout
The current sandbox is an expansion of a regional trial launched in Phuket under a vision introduced by former Prime Minister Thaksin Shinawatra. The proposal focused on allowing tourists to spend cryptocurrencies in popular destinations to drive adoption and economic revival. Now, with a national reach, the program has been formally adopted by regulators to ensure a transparent and structured implementation.
Nirun Fuwattananukul, CEO of Gulf Binance and co-operator of Binance TH, stated that the new sandbox marks a shift from concept to a regulated framework. He noted, “The new sandbox proposal is no longer just limited to Phuket, but applies nationwide.” He added that the key difference lies in its operational backing by major financial institutions, a development not present in the original concept.
Tourists will be able to convert popular digital currencies such as Bitcoin and Ethereum through licensed exchanges and brokers approved by the SEC. These funds can then be used for payments in baht via interoperable e-money platforms. QR code payments are supported nationwide, from small vendors to large-scale hotels and tourism services.
Compliance, Security, and Usage Limits
Operators must obtain the appropriate licenses and demonstrate interoperability with electronic money systems. They are also required to comply with stringent Know Your Customer and Anti-Money Laundering (AML) protocols to ensure full regulatory oversight. Notably, Thai citizens will not be allowed to transact directly in crypto, preserving a baht-only payment infrastructure to avoid currency substitution.
According to a statement by Gulf Binance’s chief executive, the sandbox introduces a clear regulatory perimeter that did not exist during the original Phuket program. “This represents an evolution from an experimental concept to a structured regulatory framework with proper oversight,” he stated.
The government intends to cap the monthly transaction volume per tourist to ensure traceability and limit misuse. While final thresholds are still under review, preliminary proposals suggest that tourists may spend up to ฿50,000 via standard QR methods and up to ฿500,000 at verified merchants.
Economic Strategy and Industry Response
According to national tourism statistics, Thailand has received 35.5 million foreign tourists in 2024 with ฿1.67 trillion generated. The figure is, however, lower than 1.91 trillion that had been recorded in 2019 before the pandemic. Thailand aims to attract crypto-literate visitors and direct new financial flows through its economy by providing a regulatory framework that allows for the use of digital assets, offering a relatively clear legal structure.
Related: Thailand SEC Opens Consultation on New Crypto Listing Rules
This initiative also brings Thailand in line with other nations piloting crypto-tourism solutions. Countries such as Bhutan and France are also developing blockchain-enabled tourism payment systems. Nirun confirmed that Gulf Binance views the sandbox as a vital step toward positioning Thailand as Southeast Asia’s crypto-tourism leader.
Despite overall support, the industry stakeholders demand readiness to precede the full launch. The Tourism Council of Thailand supports the effort, yet it puts forward the recommendation for regulators to make sure that local businesses are well prepared to accept digital payments. Merchant onboarding and training will become the foundation for the nationwide success of the program.
Concerns about illicit transactions remain active. Regulators and exchanges stress that only approved digital assets and fully licensed intermediaries will be allowed. Clear rules around asset acceptance and reporting requirements are under discussion during the public consultation period, which runs through August 13.
